Share price

When will the bleeding stop? UPS closed below 67

Explain to the ANALists that ground is the least profitable of our services. Everyone keeps going after our lucrative ground pkgs. If they're so lucrative than we should be able to keep them. Cost of labor is a crock. Get paid a third more than the competition and do 3 times the work. It's not only the union workforce that is doing well. Just rambling. Good night

FedEx Comes Through the Storm

By Ross Snel
TheStreet.com Staff Reporter



FedEx (FDX:NYSE - commentary - research - Cramer's Take) defied gloomy expectations for its latest quarter, solidly beating Wall Street estimates.

The Memphis, Tenn. shipper, whose results are often viewed as a proxy for the broader economy, also raised guidance for its current fiscal year, a move that could reassure investors worried about the impact of Hurricane Katrina and record oil prices.



FedEx said it earned $339 million, or $1.10 a share, in its first fiscal quarter, which ended Aug. 31. That was up slightly from $330 million, or $1.08 a share, in the year-earlier period. The latest quarter's earnings included a non-cash charge of $79 million related to accounting adjustments for real-estate leases.

Excluding that charge, FedEx reported EPS of $1.25 in the latest quarter, hitting the high end of the company's own guidance and beating the Thomson First Call consensus for $1.17.

In early trading ahead of the regular New York session, the stock jumped $3, or 3.9%, to $80.

Revenue of $7.71 billion was up 10% from $6.98 billion a year ago. The Wall Street consensus was for $7.58 billion.

"Hurricane Katrina had no significant effect on first-quarter results, although the storm inflicted some damage to our facilities in the U.S. Gulf Coast region," said Alan Graf, the company's CFO. "Meanwhile, our operations have resumed in most of the affected areas except for sections of New Orleans."

Frederick Smith, FedEx's CEO, said that in spite of uncertainty related to Hurricane Katrina, which devastated the Gulf Coast of the U.S., the company remains "optimistic" about global trade and expects continued economic expansion in the U.S. and in international markets.

Some investors had been concerned FedEx would lower its outlook, but the shipper boosted its EPS guidance for the fiscal year ending next May 31 to a range of $5.25 to $5.50. On average, analysts are expecting $5.28. For the current quarter, FedEx foresees EPS of $1.30 to $1.45.

FDX is up over $5 in early trading.....I'm not too proud to ride some coat-tails in exchange for a positive day on the stock market.
Go UPS !!

We lose the Dell account, and the stock makes an upward move. This would be a great job, if it weren't for all those damn packages.
Fdude

end of the quarter. UPS buying to support employee 10% discount.

doesn't the stock historically split after it stays at $70 for a while?

Since the time of the fall of the dot.coms, the market has done nothing "historically" correct. Even the brokers don't know what the heck is going on.

This is a small blurb from a column on The Street.Com by Nick Godt.....

"And at the outset of the fourth quarter, the investing environment outlook seems very much like those muddy waters in Congo.

S&P 500 such as Alcoa (AA:NYSE - commentary - research - Cramer's Take), FedEx (FDX:NYSE - commentary - research - Cramer's Take) and Union Pacific (UP:NYSE - commentary - research - Cramer's Take) have already lowered their guidance. In the coming weeks, other firms may declare special charges in the aftermath of Hurricanes Katrina and Rita; such charges don't impact operating earnings but can still weigh on share prices."

When did FDX lower their guidance? I thought that FDX's earnings report was all sunshine, lollipops and roses? Did I miss something?

<font size="+2"><font color="996633">How could this be?

The profits and revenue are up and the stock price went up too!?! What is Wall Street coming to?

</font></font>

traveler.....AND, it happened on a Friday!!!

UPS got 2 upgrades today and Fedex got downgraded. I hope that's a sign the 'darling' isn't so darling anymore. I think Fred-ex's comment about red tape in Europe was a "defeated man's" comment.

"#%$@**$@%" spoke too soon !!

moreluck- I feel your pain. I was watching it starting to climb back up about 10 min. to 4, and noticed it just tanked right after that.

Stupid wall street people. Too much hype, not enough sense.

Isn't it about time to declare the MIP ? Funny how the stock seems to go up right around this time each year.. hummmmmmmmmmmmm.

[moreluck]

This should be positive news......

[ UPS, T ] S&P: United Parcel Service to replace AT&T on S&P 100

Down over 2 percent today.

Wonder whether this is related to the pilot announcement or just the general lousy day in the market.

[tuknick]

UPS is moving into the S&P 100 (in place of AT&T), so we should see a nice bump in stock as we get nearer Friday

[tuknick]

33 cents on 4th Jan

[michael]

Looks like it will be a "HAPPY NEW YEAR" !

[moreluck]

Madman Cramer has always been in favor of Fedex......he's finally crossed over and said UPS is going to $100.00 !! He said he gives UPS the edge over FDX. I know he's a "nut", but I think he's right this time.

[tuknick]

It certainly is nice to see us head for the 80 mark

[wkmac]

Originally Posted by moreluck

Madman Cramer has always been in favor of Fedex......he's finally crossed over and said UPS is going to $100.00 !! He said he gives UPS the edge over FDX. I know he's a "nut", but I think he's right this time.

No, you're hoping he is right this time! Me Too!

I've not looked at the stock price in weeks on purpose and the results were worth it but then again way to many variables out there that could push it the other way and that is why I think suggesting $100 per share is a little out there. Funny how as fuel prices have gone down our stock went up.

Moral of the Story: Factors beyond our control are controlling our stock price so don't always read a lot into it one way or the other.

[moreluck]

In case you were wondering about the report days this year, they are:

Jan 26, 2006 4th Quarter 2005

April 20, 2006 1 Q. 2006

July 25, 2006 2 Q. 2006

Oct. 19, 2006 3 Q. 2006

All at 10:00 AM.

[tuknick]

Thanks for the info

[OldUPSDriver]

That info is helpful, thank you!!